Ag Investment Opportunities in Africa By Yohannes Assefa, J.D. Director, Stalwart Management Consultancy

Africa - In Perspective

Africa, an improving brand May 2000 Dec 2011March 2013

Africa - Today and Tomorrow $2.01 trillion - Africa’s collective GDP in 2012, higher than India; $860 billion - Africa’s combined consumer spending in million - the number of mobile phone subscribers in Africa, 16.5 million in % - Africa’s share of the world’s total amount of uncultivated, arable land 52 - the number of African cities with more than 1 million people each 20 - the number of African countries with revenues of at least $3 billion $2.6 trillion - Africa’s collective GDP in 2020 $1.4 trillion - Africa’s consumer spending by billion - number of African households with discretionary income in % - the portions of Africans living in cities by 2030 Today Tomorrow Source: Mckinsey ‘s Africa Report; E&Y Africa report

Africa’s Growth Story The Economist’s Top Growers The Economist’s Top Growers Source: Economist and IMF forecast

Where is the growth? Sector Estimated Annual Revenue by 2020 (billion$) Growth (billion $) Consumer Resources Agricultrue Infrastructure Rising commodity prices; Improved macro-economic stability; Capital inflows from India, China, Turkey; Sizeable infrastructure development investment; Remittances as a capital provider; improvement of regional trade; emergence of organized markets Emergence of “African multinationals” (MTN, Dangote) Increasing African consumer spending Source: Mckinsey ‘s Africa Report

Key Sectors for Investment Agriculture Areas of Agriculture Investing Up streamMid SteamDown Stream FertilizersHorticulture Vegetable & fruit processing PesticidesCereals Cereals processing SeedCash Crops Lives stock processing EquipmentLive stockBio fuels Other processing African food market Africa’s food import $313 billion now Expected to grow to 1 trillion by 2030 Nigeria -Population – million -GDP – 405 billion -Per capital income - $2,800 (PPP) -Food import - $12 billion per year

Issues, myths and realities around the hype of land grabbing

A look at few countries Ethiopia – Population of Ethiopia – 99 million – 76 million ha arable land available – 13.9 million ha cultivated – 3.6 million ha given to investors Mozambique – Population – 25.2 million – 37 million ha arable land available – 5.6 million ha under cultivation – 1.3 million ha given to investors Tanzania – Population - 45 million – 44 million ha arable land available – 9.1 million ha under cultivation – 80,000 ha given to investors

Final Words Yohannes Assefa, J.D. Have we explored the opportunities sufficiently?